A size you keep

The second method, set out properly. One lot size chosen in advance, sized off the narrowest stop you normally take rather than the average one.

The calculation works and it is exact. Experienced traders still move away from it, and this is what they move to.

Why anyone stops calculating

Running the sum on every trade is correct and slow. The moment you need it is the moment price is at your level.

Arithmetic under pressure is where mistakes get made, and a mistake in this sum is a mistake in the size of the position.

A fixed size removes arithmetic from the moment you are least able to do it.

You have to know what your stops usually measure on that market, in dollars, from trades you actually logged.

The course is free. The account is only there to save your place and let us tell you when new lessons land.